Siluanov said that Russia could resist sanctions with plans in which cryptocurrencies play a crucial role. President Putin has hinted that crypto assets could replace the US dollar, as progress in digital sovereignty and FinTech.
The United States recently warned Russia that it could withdraw the international payment settlement system SWIFT from the Eurasian country. However, that does not worry Russian lawmakers because they have crypto alternatives up their sleeves.
Finance Minister Anton Siluanov confirmed that his country had prepared alternatives. For that reason, he does not think the unpleasant sanctions from the United States would be fatal to them.
Siluanov stated that Russia could resist the sanctions package with plans for a Fortress Russian approach. In that context, crypto assets could play a crucial role.
The official said they expect the financial system to keep focusing inward. That would be part of the Fortress Russia strategy and allow digital sovereignty and FinTech to advance.
Digital Sovereignty and FinTech Progress in Russia, Says Siluanov
Siluanov highlighted the progress in digital sovereignty and FinTech as President Putin had hinted that cryptocurrencies could replace the US dollar.
In that sense, renowned crypto analyst PlanB said that Russia could be the next WikiLeaks for Bitcoin.
In 2011, WikiLeaks turned to the pioneering cryptocurrency because the United States removed it from traditional payment methods like Visa and PayPal.
The international non-profit organization turned to Bitcoin because it could not otherwise raise and store funds. The funding in cryptocurrencies has allowed it to continue publishing important secret files.
Since WikiLeaks began receiving donations in Bitcoin, they have made a 50,000% return, its founder Julian Assange said in 2017.
Russia to Recognize Bitcoin as a Digital Currency
The Russian government and Central Bank agreed to draft new laws and amend existing ones. According to a statement, they sought to recognize cryptocurrencies as digital currencies.
That is a significant change after the Central Bank of Russia proposed to ban all cryptocurrency-related activities. The institution is concerned that crypto assets might endanger the financial structure of the Eurasian nation.
The new legislation describes cryptocurrencies as digital currencies, not digital financial assets.
They want to integrate a mechanism for the circulation of cryptocurrencies within the financial system. They also seek to guarantee control over the cash flows of credit institutions.
According to the statement, the new rules for the circulation of cryptocurrencies and the measures to control them will minimize threats to financial stability. In addition, there will be a decrease in the illegal use of crypto assets since it is impossible to prohibit them in certain operations.
Russians will only use cryptocurrencies after various verifications through the Russian banking system or authorized intermediaries. In addition, citizens must declare operations above RUB 600,000, equivalent to USD 8,010.
The authorities will consider transactions outside the proposed parameters as major crimes and apply fines to those who do not use authorized intermediaries.
Cryptocurrencies like Bitcoin play a relevant role in the economy, which many governments and regulators do not overlook. Even though some authorities have expressed their rejection against crypto assets, they consider that they can help solve some financial problems.
By Alexander Salazar
